Grubb & Ellis Company, the "sponsor" of Grubb & Ellis Realty Advisors, Inc. (stock symbol: GAV), has announced that it is in the process of acquiring a building that it may sell to GAV. If Grubb & Ellis closes on this transaction, this will be the third building that it has purchased with the intent that it might sell it to GAV. If the GAV shareholders approve the acquisition of the three buildings, GAV would have satisfied its business combination requirements.
Grubb & Ellis Company Enters into Contract to Purchase Danbury Corporate Center for Future Sale to Grubb & Ellis Realty Advisors, Inc.
Thursday February 22, 5:22 pm ET
Company files 8K detailing transaction and recent events
CHICAGO, Feb. 22 /PRNewswire-FirstCall/ -- Grubb & Ellis Company (NYSE: GBE - News) today announced that the Company, through its wholly owned subsidiary, GERA Property Acquisition LLC, has entered into an agreement to purchase Danbury Corporate Center, a 1.1-million-square-foot office building located in Danbury, Conn.
The Company has filed a Current Report on Form 8-K with the Securities and Exchange Commission concerning the agreement. The Company also disclosed in the 8-K filing, among other things, that it has amended its senior secured credit facility to provide the Company with more flexibility with respect to certain acquisitions of real property and certain covenants.
The Company, at its discretion and without penalty, at any time prior to March 16, may elect to terminate the agreement for any reason and not proceed with the purchase of Danbury Corporate Center. Should the Company choose to move forward with the purchase, the closing, subject to customary closing conditions, is presently expected to occur on April 17.
Grubb & Ellis' current intention is to acquire the property and hold it for future sale to Grubb & Ellis Realty Advisors, Inc. (Amex: GAV - News), the Company's investment management affiliate. The aggregate value of the Danbury Corporate Center together with that of Abrams Centre in Dallas and 6400 Shafer Court in Rosemont, Ill., is sufficient to constitute Realty Advisors' business combination, if the purchase of such properties from the Company is approved by Realty Advisors' board of directors and stockholders.
The Company completed its acquisition of Abrams Centre on Feb. 20 and the acquisition of 6400 Shafer is expected to close on Feb. 28. The Company and Realty Advisors, however, do not have any current arrangement or agreement with respect to the purchase of any properties by Realty Advisors and Realty Advisors does not have any obligation to purchase any of the properties from the Company.
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